The United Kingdom's stock market has recently faced challenges, with the FTSE 100 index closing lower due to weak trade data from China, highlighting the interconnectedness of global economies. As investors navigate these turbulent times, dividend stocks can offer a potential source of steady income and stability in portfolios, making them an attractive consideration amidst broader market volatility.
Top 10 Dividend Stocks In The United Kingdom
| Name | Dividend Yield | Dividend Rating |
| Treatt (LSE:TET) | 3.40% | ★★★★★☆ |
| RS Group (LSE:RS1) | 3.96% | ★★★★★☆ |
| Pets at Home Group (LSE:PETS) | 5.86% | ★★★★★★ |
| OSB Group (LSE:OSB) | 6.16% | ★★★★★☆ |
| NWF Group (AIM:NWF) | 4.64% | ★★★★★☆ |
| MONY Group (LSE:MONY) | 6.37% | ★★★★★★ |
| Keller Group (LSE:KLR) | 3.20% | ★★★★★☆ |
| IG Group Holdings (LSE:IGG) | 4.28% | ★★★★★☆ |
| Hargreaves Services (AIM:HSP) | 5.64% | ★★★★★☆ |
| 4imprint Group (LSE:FOUR) | 5.57% | ★★★★★★ |
Click here to see the full list of 47 stocks from our Top UK Dividend Stocks screener.
Here we highlight a subset of our preferred stocks from the screener.
Nichols (AIM:NICL)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Nichols plc, with a market cap of £391.29 million, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries across the United Kingdom, the Middle East, Africa, and internationally.
Operations: Nichols plc generates its revenue primarily from two segments: Packaged, which accounts for £133.97 million, and Out of Home, contributing £40.35 million.
Dividend Yield: 3%
Nichols plc's dividend payments are covered by both earnings and cash flows, with payout ratios of 67% and 54%, respectively. Despite a recent increase in the interim dividend to 15 pence per share, its yield remains low at 3% compared to top UK payers. The company's dividends have been volatile over the past decade, reflecting an unstable track record despite growth in payments. Recent executive changes may also impact future stability.
- Get an in-depth perspective on Nichols' performance by reading our dividend report here.
- In light of our recent valuation report, it seems possible that Nichols is trading behind its estimated value.
Lancashire Holdings (LSE:LRE)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Lancashire Holdings Limited, with a market cap of £1.59 billion, offers specialty insurance and reinsurance products through its operations in London, Bermuda, and Australia.
Operations: Lancashire Holdings generates revenue through its Insurance Segment, which accounts for $173.20 million, and its Reinsurance Segment, contributing $454.20 million.
Dividend Yield: 14.0%
Lancashire Holdings' dividend yield is among the highest in the UK, yet its dividends have been volatile and unreliable over the past decade. Despite a reduced net income of US$109.2 million for H1 2025, dividends are well-covered by earnings with a payout ratio of 23.6% and cash flows at 75.3%. The stock trades significantly below estimated fair value, suggesting potential value despite historical instability in dividend payments.
- Click here to discover the nuances of Lancashire Holdings with our detailed analytical dividend report.
- Our expertly prepared valuation report Lancashire Holdings implies its share price may be lower than expected.
Wilmington (LSE:WIL)
Simply Wall St Dividend Rating: ★★★★☆☆
Overview: Wilmington plc, with a market cap of £289.37 million, provides data, information, training, and education solutions to professional markets in the UK, US, Europe, and internationally through its subsidiaries.
Operations: Wilmington plc generates revenue through its segments, including Legal (£15.14 million), Financial Services (£67.96 million), and Health, Safety and Environment (HSE) (£16.43 million).
Dividend Yield: 3.5%
Wilmington's recent dividend increase to 11.5 pence per share reflects a modest growth, though its dividends have been volatile and unreliable over the past decade. The payout ratio of 89.4% indicates earnings coverage, while a cash payout ratio of 60.4% supports sustainability. Despite trading below estimated fair value, Wilmington faces challenges with declining net income and lower profit margins compared to last year, alongside ongoing divestment efforts in its U.S. events business to enhance earnings quality.
- Take a closer look at Wilmington's potential here in our dividend report.
- The valuation report we've compiled suggests that Wilmington's current price could be quite moderate.
Seize The Opportunity
- Dive into all 47 of the Top UK Dividend Stocks we have identified here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
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Seeking Other Investments?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Lancashire Holdings might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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